the two wheeler industry is quietly upbeat

NEW DELHI: Amidst the gloomy economic situation and high inflation, the two-wheeler industry is quietly upbeat that the worst is behind them and even expect sales to grow by 7-10 per cent in the usually low-demand July-September months.

The industry, which last year was badly hurt by rising interest rates and lack of credit finance recorded a negative growth of 7.92 per cent at 72,48,600 units compared to 78,72,334 units in the previous fiscal, is bullish that a good monsoon will boost festive season purchase.

"Usually July to September is a low demand season but we should not expect steep fall in demand. Factors such as the lack of finance, which hurt sales last year, are no longer a major issue as people have got used to it," Bajaj Auto CEO Two Wheelers, S Sridhar Bajaj said.

In fact the percentage the company's sales through finance has gone down from 70 per cent to about 40 per cent, he said, while adding though there had been an increase in the amount of down payments from 5 per cent to 25 per cent.

"With Dussera and Diwali falling in October, we see good demand in the months to come," Sridhar added.

Echoing similar sentiments, TVS Motor Co Senior Vice- President (Head, Sales and Marketing) HS Goindi said the current economic situation offered a window of opportunity for the two-wheeler makers.

"With the rising inflation, two-wheeler has become a viable option and this will boost sales. We see a growth of 7-10 per cent compared to last year in the July-September months," Goindi said.